2024-08-05 19:23:40
The Bank of England, which serves as the central bank in the United Kingdom, lowered its key rate for the first time since 2020 – from 5.25% to 5%, Day.Az reports with reference to TASS.
“The Monetary Policy Committee voted by five votes to four to cut the bank rate to 5%,” the statement said. The rate was cut after annual inflation in the UK remained at the 2% target for two consecutive months. Inflation in the country in May fell to this level for the first time since July 2021. In October 2022, against the backdrop of the introduction of Western sanctions against Russia, inflation in the UK was 11.1%.
In March 2020, the country’s key rate was at a record low of 0.1%. The Bank of England began gradually raising it in December 2021 in order to contain the growth of inflation – first against the backdrop of the coronavirus pandemic, and then due to the conflict in Ukraine. In August last year, the rate was set at 5.25%. According to analysts at the London Stock Exchange, the probability of the Bank of England cutting the rate on Thursday was 65%.
Subscribe to our WhatsApp channel and stay up to date with the latest news!